All Forum Posts by: Daniel Netzer

@Daniel Netzer most of the lots available are in the south bend area so I’ve been looking around Deschutes River Woods and as far south as Three Rivers and La Pine. Comps in the area for high quality listing are in the range of my post estimates. Tourism is growing, % of those visitors choosing STRs over hotels is increasing, and supply of rentals will start going down in the city because of the restrictions.

I’ve been wanting to live in the PNW for a while and have been looking for a way to invest in the area!

I am interested in building a small home in southern Bend, OR (outside of the city limits where the STR restrictions are) or in La Pine with the end goal of turning it into a short-term rental. I am interested in hearing from anyone with experience in this type of thing!

I would like to purchase land in the area and have a roughly 800-1200 sqft 2/1 home built that could fit 4-6 people. The home would be built with STR in mind so it would include many amenities, unique architecture, large windows with a great view, and finishes that stand out on listing platforms. To finance this with a low down payment, my wife and I would live in the house for a year after construction is complete so that it can be considered a primary residence before it is listed.

My estimates on numbers...

Initial Purchase

Land purchase - $150,000

Home construction - $250,000

Down Payment (with 5% one-time close construction loan) - $20,000

Closing - $8,000

Monthly Expenses

PITI (including PMI) - $3,400

Utilities/Supplies/Maintenance - $700

*calling cleaning a wash because I charge for it

Monthly Rev

Occ - 70%

ADR - $250

Totals

Annual pre-tax profit - $15,000

CoC - Around 30%

Would love to hear thoughts on potential risks or any recommendations on people to work with!